Segment Reporting and Revenue

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment Reporting and Revenue

Segment Reporting and Revenue

In operation of the business, our management, including our chief operating decision maker, who is also our Chief Executive Officer, evaluates the performance of our operating segments based on revenue and gross profit. We do not analyze discrete segment balance sheet information related to long-term assets, all of which are located in the United States. All other financial information is presented on a consolidated basis. We have five operating segments and two reportable segments, real estate services and properties.

We generate revenue primarily from commissions and fees charged on real estate services transactions closed by our lead agents or partner agents, and from the sale of homes. Our key revenue components are brokerage revenue, partner revenue, properties revenue, and other revenue.

Information on each of the reportable and other segments and reconciliation to consolidated net loss is as follows:

	Year Ended December 31,
	2019			2018			2017
Real estate services
Brokerage revenue	$	496,480		$	406,293		$	330,372
Partner revenue	27,060			25,875			21,198
Total real estate services revenue	523,540			432,168			351,570
Cost of revenue	373,150			309,069			237,832
Gross profit	$	150,390		$	123,099		$	113,738
Properties
Revenue	240,507			44,993			10,491
Cost of revenue	245,189			46,613			10,384
Gross profit	$	(4,682	)	$	(1,620	)	$	107
Other
Revenue	17,634			9,882			7,975
Cost of revenue	19,239			11,937			10,000
Gross profit	$	(1,605	)	$	(2,055	)	$	(2,025	)
Intercompany eliminations
Revenue	(1,885		)	(123		)	—
Cost of revenue	(1,885		)	(123		)	—
Gross profit	$	—		$	—		$	—
Consolidated
Revenue	779,796			486,920			370,036
Cost of revenue	635,693			367,496			258,216
Gross profit	$	144,103		$	119,424		$	111,820
Operating expenses	223,349			163,358			127,792
Interest income	7,146			5,416			882
Interest expense	(8,928		)	(3,681		)	—
Other income, net	223			221			88
Net loss	$	(80,805	)	$	(41,978	)	$	(15,002	)

Revenue earned but not received is recorded as accounts receivable on our consolidated balance sheets, net of an allowance for doubtful accounts. Accounts receivable consists primarily of commission revenue and proceeds from the sale of homes and are known, and therefore it is not estimated.

The following table presents the detail of accounts receivable for the periods presented:

	Year Ended December 31,
	2019			2018
Accounts receivable	$	19,388		$	15,529
Less: Allowance for doubtful accounts	(165		)	(166		)
Accounts receivable, net	$	19,223		$	15,363

The following table presents the activity in the allowance for doubtful accounts for the periods presented:

	Year Ended December 31,
	2019			2018			2017
Balance, beginning of period	$	166		$	160		$	150
Charges	(15		)	43			81
Write-offs	14			(37		)	(71		)
Balance, end of period	$	165		$	166		$	160